Nigerians have called on the 36 states of the federation to go back to areas they have comparative advantage on as a means of growing their Internally Generated Revenue – IGR.
The development comes amid concerns that Oil-rich states, such as Akwa Ibom, Bayelsa and Delta, could face a financial crisis without the critical allocation from the Federation Account Allocation Committee; FAAC despite their abundant resources.
The report by a civic-tech organisation, BudgIT, revealed that 32 states depended on FAAC transfers for at least 62 percent of their recurrent revenue, with 21 states relying on federal sources for over 80 percent of their income.
Speaking during INSPIRATION FM’s News and Current Affairs, Talk Radio hosted by ADEBAYO SAMUEL at the weekend, Citizens advised all the states in the country to grow their IGR by going back to whatever they can produce.
They also called the federal Government, to allow states to have full control of their resources and thereafter make returns to the central Government.
The FAAC, which distributes funds monthly, allocates these funds based on various factors, including the 13 percent derivation, statutory allocations, Value Added Tax (VAT) revenue, and the division of funds among the three tiers of government.